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Time of India
6 days ago
- Automotive
- Time of India
Shield for mass market, drive-in for luxe cars
India will slash duties on high-end cars from the United Kingdom under the free trade deal signed on Thursday, while protecting the mass-market segment where Indian manufacturers are gaining global ground. "Vehicles priced below £40,000 (about ₹46 lakh including cost, insurance and freight), where Indian automakers are highly active, have been explicitly excluded from any duty concession," an explanatory note released by the commerce ministry said. "The concessions are targeted largely at large engine capacity ICE vehicles- above 3000 cc petrol or 2500 cc diesel and high-end EVs priced above £80,000 (CIF)...providing a protective shield to the mass-market EV segment," it said. The deal is likely to benefit luxury car brands such as Aston Martin, Rolls-Royce, McLaren, Lotus, Jaguar Land Rover (JLR) and BMW Mini, which currently face steep import duties of about 110% in India. Under the Comprehensive Economic and Trade Agreement (CETA), India will gradually reduce customs duties to 10% for a specific quota of high-end vehicles over five years. For out-of-quota imports, the duty cut will be limited to 50% over 10 years. Notably, no duty concessions will be extended to EVs, hybrids, or hydrogen-powered vehicles during the first five years of the agreement. From the sixth year, the number of internal combustion engine (ICE) vehicles permitted under the concessional regime will decrease in proportion to the number of EVs imported, with the total import quota capped at 37,000 vehicles over 15 years. JLR, the Tata Motors-owned British marque, welcomed the deal even though many of its products being sold in India will not benefit. "India is an important growth market for our British-built luxury products," said a JLR India spokesperson. Around 60% of the cars JLR sells in India, including popular models in the Range Rover portfolio - Range Rover, Range Rover Sport, Velar and Evoque - are already locally produced through the CKD route. "Only a limited number of high-value SV models are currently exported from the UK to India and therefore in scope of the FTA," said the spokesperson. Defender, which is manufactured in Slovakia, too, falls outside its scope. Benefit from the trade deal will depend on brand-wise allocation under the duty concession quota, a spokesperson at a European carmaker said. Clarity on pricing will only emerge once the final legal text is released and approved, the person added. On the components side, Shradha Suri Marwah, president of the Automotive Component Manufacturers Association (ACMA), said the FTA is expected to boost exports, streamline regulatory processes, and foster collaboration in electric mobility, precision engineering, lightweight materials, and R&D.
Mint
24-07-2025
- Automotive
- Mint
JLR margin math wobbles on twin hit from China tax, EU-US trade deal move
New Delhi: Jaguar Land Rover (JLR) is staring at a fresh wave of geopolitical and policy-driven turbulence, with China slapping a 10% tax on most luxury cars and the European Union (EU) proposing tariff relief only for automakers that manufacture in the US. For the Tata Motors-owned brand, which does not have a manufacturing base in the US, these twin developments could complicate recovery efforts and further squeeze profit margins. Starting July 20, China imposed 10% luxury consumption tax on cars priced over 900,000 renminbi. This covers most of the models sold in the Chinese luxury car market. Earlier, only cars priced above 1.3 million renminbi attracted the levy from the Chinese government. The timing of the twin hits could hardly be worse. Just a month ago, Jaguar Land Rover trimmed its growth forecast for the current fiscal year. Now, analysts are warning that these latest trade and policy shifts risk derailing the company's already modest FY26 guidance of 5-7% earnings before interest and tax (EBIT) margin. JLR had banked on reduced tariffs on exports from its Slovakia plant to the US, but that scenario may now be overtaken by events. The EU, which is finalizing a trade deal with the US for lower tariffs, has proposed that auto firms that have manufacturing in that country and export from there should be given some relaxation from 25% tariffs on imports. 'The two combined geopolitical headwinds pose a downward risk to the company's FY2026 guidance of 5-7% EBIT margin, which had only factored in lower tariffs on its exports from Slovakia to the US after the EU-US trade deal," analysts at Kotak Institutional Equities wrote in a 21 July note. Agreeing with a possible near-term pressure on JLR, analysts at Ashika Institutional Equities said in a note on 23 July that the UK-headquartered firm could face challenges on the two fronts, given the latest developments. 'Both developments present strategic challenges for JLR. In China, pricing pressure from new taxes could impact high-end model sales, while in the West, the absence of US manufacturing limits JLR's ability to benefit from policy support, thereby increasing its relative vulnerability in key export markets," the Kotak note said. JLR rivals' BMW and Mercedes stand to benefit the most if EU's proposal is accepted by US as they have plants in the country, from where they export elsewhere. JLR has manufacturing plants in the UK and Slovakia in Europe. In India, it has an assembly plant in Pune, where it assembles several models like Range Rover, Range Rover Sport, Velar, Discovery and Evoque. In FY25, JLR sold 10% fewer vehicles than the previous year in China at 47,200, while Europe saw an 11% decline at 71,700 units. Its biggest market, North America, recorded a 22% jump in sales to 129,000 cars during the year. However, JLR has faced headwinds in the international market since March, when US President Donald Trump announced a blanket 25% tariff on all automobile imports. During April-June, the first quarter of this FY, the maker of Range Rover SUVs sold 87,286 units, 11% fewer than a year ago due to a pause in shipments to the US in April to assess the tariff impact. JLR, which was acquired by Tata Motors in 2008 for $2.3 billion, contributed about 71% to Tata Motors overall revenue in the last fiscal. Analysts have earlier expressed concern that the near-term outlook for the company is weak. 'In JLR, discontinuance of 'Jaguar' ICE models, loss of market share in the China region and imposition of tariffs in the US shall lead to volume contraction ahead," Nuvama Institutional Equities had said in a note on 16 June. The company has acknowledged that its free cash flow will reduce to nearly nil in the current financial year. With the company looking to tackle the negative effects of various headwinds world over, it expects to end the current fiscal year with nil free cash flows. However, the management had earlier said the impact could have been even worse and the measures being implemented to offset the hit are leading to savings. 'The tariff impact will be primarily on Jaguar Land Rover. Tariff has gone up from 2.5% to 27.5%, and under the UK-US FTA, the tariff is 10%. The overall impact would have been 1.6 billion pounds," Tata Group Chairperson N. Chandrasekaran told shareholders at Tata Motors' annual general meeting on 20 June. 'But due to the steps taken by JLR, the impact has gone down to 600 million pounds, which is visible in the margin guidance," he added. At Tata Motors' annual investor day event also in June, the company said JLR will undertake several measures to drive savings, including manufacturing cost reduction, lowering vehicle warranty costs, and improving cost efficiencies in the overall value chain. The measures will collectively lead to savings worth 1.4 billion pounds per annum till financial year 2028, the company said. Jaguar Land Rover declined to comment when asked about the likely impact of the proposed EU-US trade deal and the Chinese luxury tax. The impact of the headwinds reflects in the company's share price. In 2025, Tata Motors' share price is down 8%, even as Nifty Auto has risen by 4%.
India.com
18-07-2025
- Automotive
- India.com
Bad news for Tata group employees, this Ratan Tata company to sack hundreds in…, decision to affect….
Tata Motors-owned Jaguar Land Rover (JLR) on Thursday announced plans to reduce its managerial workforce by several hundred positions through a 'limited' voluntary redundancy program. The move is aimed at aligning its leadership structure more closely with the company's evolving business strategy in the luxury automotive segment. The UK-based car manufacturer, which has been under pressure from US President Donald Trump's tariff wars, welcomed the recent trade deal that eases some pressure on its automotive exports to the American market. Tata Motors Layoff The number of jobs set to be hit is estimated at around 500 amid high American tariffs which were cut to 10 per cent under the US-UK trade agreement, a rate only covering cars made in the UK. The trade deal terms also cap total annual car exports to the US at 100,000 models, with the higher rate applying to any vehicles crossing that mark. British Prime Minister Keir Starmer had chosen the UK headquarters of JLR in the West Midlands region to deliver a key speech back in May to reassure staff amid the US trade wars. As news of the job cuts emerged, Downing Street said JLR was 'responding to challenging global conditions'. It comes as JLR ceased production of most Jaguar models ahead of a complete relaunch expected next year. In November 2024, the carmaker unveiled a bold rebrand featuring a pink concept car and replacing its big cat logo with a capital J. JLR On VR Programme However, the latest figures released last week had revealed a drop in sales in the April to June quarter which had witnessed a temporary pause in shipments to the US amid high tariffs of 25 per cent on cars. 'JLR regularly offers eligible employees voluntary redundancy (VR) programmes,' a JLR spokesperson said. 'Through this limited UK VR programme for managers, JLR is aligning its leadership workforce for the business's current and future needs. We are grateful to the government for delivering at speed the new UK-US trade deal, which gives us the confidence to invest GBP 3.5 bn per annum to realise our strategy which is delivering,' the spokesperson said. (With Inputs From PTI)
News18
17-07-2025
- Automotive
- News18
Tata Motors-owned Jaguar Land Rover to cut hundreds of managerial roles in UK
London, Jul 17 (PTI) Tata Motors-owned Jaguar Land Rover (JLR) on Thursday confirmed plans to cut hundreds of managerial roles as part of a 'limited" voluntary redundancy programme, which it says is aimed at better aligning its leadership workforce with the luxury car brand's business strategy. The UK-based car manufacturer, which has been under pressure from US President Donald Trump's tariff wars, welcomed the recent trade deal that eases some pressure on its automotive exports to the American market. However, the latest figures released last week had revealed a drop in sales in the April to June quarter which had witnessed a temporary pause in shipments to the US amid high tariffs of 25 per cent on cars. 'JLR regularly offers eligible employees voluntary redundancy (VR) programmes," a JLR spokesperson said. 'Through this limited UK VR programme for managers, JLR is aligning its leadership workforce for the business's current and future needs. We are grateful to the government for delivering at speed the new UK-US trade deal, which gives us the confidence to invest GBP 3.5 bn per annum to realise our strategy which is delivering," the spokesperson said. The number of jobs set to be hit is estimated at around 500 amid high American tariffs which were cut to 10 per cent under the US-UK trade agreement, a rate only covering cars made in the UK. The trade deal terms also cap total annual car exports to the US at 100,000 models, with the higher rate applying to any vehicles crossing that mark. It comes as JLR ceased production of most Jaguar models ahead of a complete relaunch expected next year. In November 2024, the carmaker unveiled a bold rebrand featuring a pink concept car and replacing its big cat logo with a capital J. Meanwhile, the company revealed on Thursday that it is collaborating with smart electric vehicle (EV) charging software platform to support efforts to make charging more 'sustainable and affordable". JLR said it is running a pilot scheme in the UK to test the integration of software using 10 electric Jaguar I‑PACE models. 'Together, we are designing and deploying a smart charging solution that will meet our luxury clients' expectations. It will support the transition to electrification through the efficient use of energy, with a view to reducing pressure on the grid and lowering costs for users," said Swarna Ramanathan, JLR Chief Strategy Officer. It forms part of a wider 'Reimagine' strategy which aims to transform the business to become carbon net zero across supply chain, products, and operations by 2039. Electrification is central to this strategy which will see all brands have a pure electric model and Jaguar entirely electric before the end of the decade. PTI AK MR MR view comments First Published: July 17, 2025, 18:45 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
17-07-2025
- Automotive
- Time of India
Tariff threats & trade wars: Tata Motors-owned Jaguar Land Rover cuts hundreds of jobs in UK; here's what's happened
Representative image Tata Motors-owned Jaguar Land Rover (JLR) has confirmed it will cut around 500 managerial jobs in the UK as part of a 'limited' voluntary redundancy programme, aligning with its ongoing business transformation strategy. The move on Tuesday comes as the luxury car manufacturer aims to streamline its leadership workforce and improve efficiency amid global economic headwinds and shifting trade dynamics. Leadership restructure & tariff threat JLR's decision to reduce managerial roles follows a decline in sales during the April–June quarter, driven partly by high tariffs on exports to the US. Temporary shipment pauses to the US market earlier this year further impacted performance. A JLR spokesperson said as quoted by PTI, "Through this limited UK VR programme for managers, JLR is aligning its leadership workforce for the business's current and future needs.' The UK-based automaker welcomed the recent UK-US trade agreement, which reduced tariffs on British-made cars from 25% to 10% and capped duty-free exports at 100,000 units annually. 'We are grateful to the government for delivering at speed the new UK-US trade deal, which gives us the confidence to invest GBP 3.5 billion per annum to realise our strategy which is delivering,' the spokesperson added. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo As part of its strategic shift, JLR recently halted production of most Jaguar models in preparation for a major brand relaunch in 2025. The company revealed a bold new brand identity last year, including a redesigned logo and a pink concept car. British prime minister Keir Starmer visited JLR's headquarters in the West Midlands earlier this year to show government support. Following news of the job cuts, Downing Street stated that JLR is 'responding to challenging global conditions.' 'Reimagine' drives smart EV charging push In line with its long-term sustainability vision, JLR also announced a new pilot project in the UK in partnership with smart EV charging software platform The pilot involves 10 electric Jaguar I‑PACE vehicles and aims to develop efficient, cost-saving smart charging solutions. 'Together, we are designing and deploying a smart charging solution that will meet our luxury clients' expectations. It will support the transition to electrification through the efficient use of energy, ' said Swarna Ramanathan, Chief Strategy Officer at JLR, as reported by PTI. JLR's transformation is part of its broader 'Reimagine' strategy, which aims to make the company carbon net zero by 2039 across its supply chain, products, and operations. The automaker plans to offer fully electric models across all brands, with Jaguar becoming all-electric by the end of this decade. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
